Why 47 of our clients chose a family foundation
Money likes silence, and a family foundation is currently the most effective way to ensure that silence. At Profit Embassy, we guided 47 families through this process who wanted to avoid asset disputes and legally optimize taxes. Without fluff — we show how it works in practice on specific examples from Bydgoszcz and the surrounding area.
An end to breaking the company into small pieces
Many people ask us in the office why they should bother with a foundation at all. The answer is simple: so that 23 years of your hard work do not go to waste because of one error by an heir. We have seen a situation where a thriving transport company with 34 trucks was paralyzed because siblings could not agree on the sale of one base. A foundation solves this problem. It is the owner of the assets, and the family derives benefits from them according to the rules you set today. There is no room for guesswork.
At Profit Embassy, we have already handled 47 such processes. Each of them took an average of 4 to 6 months, depending on how quickly the court in Piotrków Trybunalski processed the applications. This is not a solution for everyone. If your assets are just one apartment, it is a waste of your time. But if you have a company or 7-8 rental properties, the numbers speak for themselves. Protection against creditors is another concrete argument that tipped the scales for 31 of our clients. We count facts, not promises.
A foundation is not a safe, it is an instruction manual for your money for the next 50 years.
Taxes under control — 0% CIT on reinvesting
The greatest advantage of a family foundation, which is rarely written about in newspapers without unnecessary jargon, is the object exemption from CIT. In practice, this means that if the foundation sells stocks, shares, or real estate, it does not pay income tax. This money stays in the foundation and can be further invested. One of our clients from Bydgoszcz saved 82,400 PLN in this way on a single transaction of selling commercial premises. These funds immediately went towards the purchase of another property.
However, one must remember one thing: tax appears when money is paid out from the foundation to beneficiaries. It is then 15%. This is still very profitable, especially since you avoid the solidarity levy and double taxation. Without fluff — a foundation is the best way to accumulate capital within the family. At Profit Embassy, we always pick up a calculator first to check if, in your case, these savings will cover the costs of running the foundation, which are about 3,200 PLN per year for accounting alone.
What the registration process looks like in practice
The whole procedure starts with a visit to a notary, where you create a founding deed or a will. Then you bring in assets worth at least 100,000 PLN. This can be cash, but 38 of our 47 clients brought in shares in their limited liability companies. This is the most logical step. Then we submit an application to the District Court in Piotrków Trybunalski. Currently, the wait for an entry is about 114 days. We handle all the paperwork so that you don't have to waste time correcting applications.
An important element is the statute. This is the most important document that defines who gets the money, when, and under what conditions. You can state that grandchildren will get funds for studies only if they choose specific fields, or that no one can sell the family tenement house for the next 25 years. We operate within the law, so the statutes are solid and resistant to challenge. (Heads-up: The court can reject an application for one wrong comma in the statute, so it is worth doing it properly the first time).
The court in Piotrków does not forgive errors in statutes. We make sure there are none.
Who this is not a good solution for
We will be honest with you — a family foundation is not a cure-all. If your only goal is to hide assets from a bailiff when you already have 5 cases in progress, then a foundation will not help you. The Paulian Action works very effectively here. A foundation is established when there is peace on the horizon to maintain that peace for years. Money likes silence, not nervous moves in the face of bankruptcy. If you have doubts, we will tell you straight whether it makes sense.
Also, the costs of maintaining a foundation can be a burden for very small companies. In addition to accounting, there is an audit every four years, which costs about 4,500 - 6,000 PLN. If your annual profits do not exceed 150,000 PLN, it is probably better to stay with a regular limited liability company and wait another year or two before setting up a foundation. At Profit Embassy, we count facts and do not sell fashionable solutions to everyone who walks in off the street. Our effectiveness comes from the fact that we know how to say 'no'.
